Topic: Why criminals prefer cash (Fiat) on top of crypto? - page 11. (Read 4846 times)

Simply, they have no knowledge yet on how to store value in cryptocurrency. I think if they have some options in keeping their stole money, they probably choose to store it in anonymous and secured place. We just be thankful because cryptocurrency is not yet the main wallet that theft and other criminals use when they want to store. But for sure, there are criminals that are hiding their money in cryptocurrency specially those who are in government position that is corrupt.

It's hard to acquire big sums of monero anonymously due to the low adoption, what would force criminals to use an exchange, what would be easily traceable, it's true.
But seems that is the only thing preventing private currencies considerable usage by criminals. If monero were a common currency being used by lots of people these criminals could easily find some strawmen to help them informally with their schemes through p2p transactions. So I think it would be very near to anonymity.

Cash is truly the most anonymous money in the world.

However, there is a trend towards restricting the use of cash around the world (especially in the Scandinavian countries).  

Cash is very difficult to control.  You can, of course, rewrite the numbers and series of banknotes ... This can be effective if the money is known to be stolen ...

Regulators are trying to ban cash altogether.  Most likely, they will succeed.  

In my country, stores do not accept cash due to Covid-19.  I can only pay for purchases with a credit card.

The new digital cash of the 21st century is Monero (XMR).  I think that cash will not disappear in the 21st century.  21st Century Cash = Monero.

Most criminals are not educated as criminals are choosing cash fiat at the top of crypto they like Fiat because they have no idea about crypto. Fiat currency is used all over the world and criminals can easily do everything with cash. But in the case of crypto fiat is not possible. Criminals will face many problems if crypto circulation is not everywhere. Criminals will use Fiat currency wherever they want to go wherever they want the transaction of criminals is much faster.

Monero is well known to be a good anonymous cryptocurrency,
due to many cases of money laundering and the bad things using Monero as a means of storing fiat on top of crypto,
Bitcoin can also be used like that, but now the exchange has become tight with KYC inside.

This is very sound and logical answer. liquidation is number one and no  money trail. Because they are doing suspicious activity, they have to cover their tracks so that they cannot be trace by authority.


That's another reason, cryptocurrency needs somehow a little knowledge of technology. Most of them prefer old school ways of transaction, that is preferring to use cold cash. Some are also in doubt with technology. But they are evolving and hackers and cybercrime are prevalent and rising where billions of  dollars  are already lost online.

I agree with you. Some criminals preferred cash or physical money rather than crypto currency because I believe that some of them have no knowledge in  crypto world and they might get caught with just a wrong move that they will make. This criminals just wanted an easy to use money that is why they tend to always choose fiat for a sure spendable money, anytime and anywhere.

The number of people actually considering bitcoin to be a safe haven is so small it's a rounding error. It would round to zero on a global scale. Covid hasn't really done anything to push adoption. It would be one thing to try to argue it's beneficial because it's digital and cash is physical and could spread the virus, but almost no one uses crypto for commerce, so that's not really a viable argument. The only thing I agree with is that the vast majority use fiat over crypto and the reason is simple- utility. Fiat is still the king for commerce. Bitcoin isn't changing that any time in near future.

Precisely. Most crimes committed mowaday aren't extensive by any measures of intelligence, so it wouldn't comes as a surprise if these criminals wouldn't even be aware of cryptocurrencies in the first place. Besdies that, we can also assume the reason that they wanted faster transactions in exchange for their own privacy of course.

This is life... Criminals are exactly like us, they just make a different living... If they can use bitcoins everywhere, it will be better and more convenient for us to use bitcoins too!
By the way, now it is also unrealistic to return stolen funds... So I don't think that anything will change much if the bitcoins are accepted all over the world!

Exactly. There are many ways to remain "under the radar" when using crypto for illicit activities. The real problem is that criminals are not tech-savvy enough to understand how crypto truly works. If they did, they would've used crypto in mass already. Aside from the fact that crypto's prices are unstable on the market, there aren't many merchants and businesses accepting it. Fiat, on the other hand, has widespread acceptance in the mainstream world and it's extremely easy to use. As long as this is the case, most criminals will continue to use Fiat for all of their wrongdoings in the mainstream world.

Nonetheless, I'd imagine that there would be a full government crackdown on crypto if criminals begin using it in mass. Which is why, I believe that the more criminals are using Fiat on top of crypto, the better it'll be for the growth of the Blockchain industry. We need more legitimate use cases for crypto in order to maintain its approval from mainstream governments. Fortunately, institutional investors and serious traders are joining the game. Companies and prominent businesses are also jumping on the crypto train, giving a greater level of legitimacy to the crypto/Blockchain space. As long as this is the case, crypto will receive mainstream recognition by central banks and governments worldwide. Just my thoughts

That is probably the greater risk for criminals, after all if you want to obtain fiat currency for your bitcoin most likely you will have to identify yourself, however what will happen when they can finally use their bitcoin to buy whatever they want by just using bitcoin without converting to fiat? Most likely at that point it will become impossible for anyone to catch them if they are smart and this is unfortunate as it will become impossible to recover the funds stolen in scams or hacks.

besides being easy, the value of Fiat is also more stable. different from crypto which is very volatile. for example, today the thief gets 1 million dollars, when it is stored into crypto, the next day the asset value can be 0.99 million dollars, because the asset value is difficult to predict.

But there are mixers nowadays. You put your stolen crypto there and you get it back clean without traces.
In terms of kyc, it is also not difficult to create a fake info today. You edit a document with your image and personal info of a different person then use it to complete kyc.
Wise criminals will always choose cryto over fiat, it's just that most people are still not yet completely aware of how these crypto works so most of them still prefers fiat.

This is what i do have in mind where converting your cash to crypto will really be having that kind of problem on someone who do tend to make out conversions throughout to exchangers
which basically means that you would need up to pass some KYC before you would able to do so which criminals doesnt really like this kind of thing of course.Unless
if there would be some p2p purchases then they might able to get some bitcoin but in most cases this would really be on exchange platforms.
Why would they dive into things that will put up some headache if they can just simply make use of fiat directly just like the good old ways.?

Exactly. I believe that what's missing here is education. If criminals knew how to use crypto for their own benefit, they wouldn't be using Fiat for all of their nefarious activities. It's just that most criminals are not tech-savvy enough to understand how crypto/Blockchain tech works. I'd prefer them to continue using Fiat for the sake of the entire crypto/Blockchain industry. If criminals start adopting crypto in mass, you'd expect a massive crackdown from mainstream governments. Only then, the growth of the industry will stifle. As much as I want to see crypto succeed, we need to expand it's legitimate use cases for governments to be friendly towards it. But the advent of privacy coins, decentralized exchanges, and even "De-Fi" platforms, might attract wrongdoers into the industry. Governments will try to interfere, but they won't have any luck due to the decentralized nature of crypto/Blockchain tech. After that, they might declare crypto illegal for mainstream use.

Nonetheless, crypto's price volatility, transparency, and steep learning curve will scare off many criminals in the mainstream world. They'll continue to use Fiat because it can be used offline, it's stable, and extremely easy to use for day-to-day transactions. As long as this is the case, there should be nothing to worry about. Let's hope that crypto is used more legitimately for the sake of its growth in the mainstream world. Just my thoughts

Maybe because it is very complex to convert the money from crypto and it requires KYC where personal details are required before getting the money.

So they prefer the traditional thing and besides not all of them are capable of hijacking cryptocurrency.

It's obvious that it's easy for criminals to use the traditional which has easier transaction processes.

Because criminals, mostly, are can we say uneducated in the first place, they're not the kind of criminals we've seen in movies who are highly intelligent. If you think about it, the people who are mostly in the news related to crimes, have problems that result in them being on that side of the road. So being Fiat money as the commonly used fiat money that can be used everywhere, makes for it as the center for attention. Unlike in crypto, where it is undeniably hard to learn, and crypto is uncommon to the general knowledge of the mass.
Aside from those reasons, crypto is not tangible, unlike fiat. For these "Criminals" to know if a person currently has a great amount of crypto in their pocket, assuming that they do research about their target, taking a hold of crypto can be a real hassle for them,

Bitcoin laundering, frauds and scams are mostly the crimes involving Bitcoin and other cryptos in the previous years. There is even a study in the University of Oxford, year 2017, wherein findings stated that there are 44 percent Bitcoin transactions which are related to crimes. So it is quite not a surprise knowing that anonumity is protected in this technology, as we all know. But to compare this with cases involving fiat currencies, odds will be on fiat to be more likely included in the motives of crime offenders, probably because it would be easier for them to use the money to anywhere and anytime they would want to.

Because they are use to fiat money that is why they always prefer cash on top of crypto. During the pandemic many scammers where all over the crypto looking for someone to scam and collect cash on top of their crypto. Most of the criminals in cryptocurrency don't have any idea concerning the coin the investors are using to invest to make some good out of their investment.the criminals in cryptocurrency just have idea on fiat money that is why they always after the cash on top of cryptocurrency.